I'm having a hard time with this indicator. I appreciate the math and theory that went into it....but if you throw enough lines on your chart, you can always make an argument for support and resistance in any particular area.
@@jonstnr I understand exactly. it may be subjective, just remember that once the candle hit the target area, you may want to add more indicators that will agree with your analysis as well.
Fibonacci theory has just become more clearer to me in under 10 minutes due to your great video than it has in 10 months from other sources. I discovered your platform and videos about a week ago and have watched lesson after lesson. You have a great way of teaching. Thank you.
Fibs aren't meant to be used alone, but can be used as a confirmation of other technical analysis, or to predict profit targets (again as a confirmation of predicted price action). As with anything, they don't work all the time, but as a tool, they can be quite effective. After all, the Gartley pattern, Bat pattern, Cypher pattern are all fib based. And they can be very profitable patterns (if backtested properly).
From knowing nothing beyond it being TA, this short explanation was direct and to the point, and shown excellently. Very simple to understand the way it is laid out etc. What id love to see now is how the fib lines are actually used by traders who really focus on it. I kno you said don’t trade based off fib but you explain everything very succinctly. Awesome
Most of anything, David's humility is very evident in the manner he explains. Baises seem to be out. Great job David for us to easily understand Fibonacci Retracements.
I love davids style of teaching. Very informed and honest about his opinion, yet regardless he still provides a wonderfully clear explanation of the subject. Well done, but one thing that would be nice, but could possibly be out of the scope of what these videos ultimately aim to achieve, would be to mention not only that you personally are not a fan of fibonacci but to check out ___ form of analysis that you are a fan of. Once again, great video!
Never get bored of watching the videos you do david , you explain everything so clearly and in detail , I dont know of anyone that can do it better than you
Lot of folk jumping in and saying he's not applying it properly- but none has offered an axplanation as to how exactly it should be used. Easy to neg everything- to put up or shut up would be fair I think.
Anyone who says Fibonacci retracements don't work doesn't know how to use them. It's like the people who say short term investing doesn't work. My reaction when he said that was probably the same as his when people find out he's a trader and tell him how the financial markets are a scam and no one can really day trade successfully: "Whatever bro. It's making ME money."
He said it's not for him but he explained it well. Mostly because of the basis of retracements, how it's most likely just some absurd self-fulfilling prophecy.
I appreciate the evenhanded treatment of it. A skeptic could pretty easily say that if you draw 4 lines on a graph, give each one a certain margin of error, and always have a plan B prediction, it would be hard not to get somewhere in the ballpark, but all of those contingencies of "well if it breaks this level just go lower" is about the same kind of money pit as saying you should just double your bet every time you lose at blackjack.
First time I ran across your videos, David...EXCELLENT video! Very well explained in layman's terms. Congratulations for not confusing the crap out of me.
I feel like the only reason this would work is if many other traders were using it too, basically just deciding it should stop at that hidden support because of this “magical” ratio.
I tried watching till the end but I lost the will to live.Trade 212 is a great platform massive learning curve for me really getting hooked and enjoying losing my money lol
Tradiingview added the Fib indicator in the last couple of weeks that auto-draws-but just traditional. In my opinion, I think one major reason these work-on the entries especially,-is that 1000s+ of traders are entering right at or very close to the same levels all at once because they are watching the same thing. It's similar to a group of "whales" deciding when to get into a Crypto trade just to "pump" the trade. However, in their case they have a predetermined sell point which really hurts people buying in and not aware of it or when to exit. . It's like a self-fulfilling prophecy.
Your use of fibonacci levels isnt wrong, but that's not how algo use fibs to trade. They're doing extensions from dominate pivots. Understanding that might change your opinion of the validity of fibonacci in trading. Good video
What indicators do you like or use bud your obviously a great trader so we would love your recommendations. This would be more valuable to us I think.cheers for your great vids
That explains the possible utility for the 50% or 61% retracement levels. What is the utility of other levels then? Why not just providing those two levels in the graph?
Hello David, I have watched almost all your video series. you are explaining the concepts very clearly. that's really helping me to understand the market better. could you please make a video about the Market depth and how it will affect the price action. Thanks alot
So basically it's a way of seeing that the price does up, down, and up again? It's just a giant, useless, confirmation bias indicator. if it "breaks below" a percentage level of support, then bounces back up (because that's what prices do), then the fib retracement support worked? This indicator would only work if literally every player in the market went by its principle. How come you see a jump or drop in price after a big news headline? If the price jumped after a big pice of news and it just to happened to be at a fib retracement level, then fib retracement correctly predicted that? Doesn't anyone see that it is in our psychology to confirm and recognize patterns, even if they don't exist?
Thank you, a well-explained video. Could you please explain the difference between volume and tick volume and how to use the tick volume? I'm a bit confused to see a company trading over 1M shares a day while the tick volume reads only a few thousand ticks. Successful trading!
I am a beginner trader and like Fibonacci because I think so many people believe in it that it affects the Fibonacci trading to become true. Am I making sense?
Hi David, love the videos. Always very informative. I have watched a number of your videos and see that you are 'not a fan' of some of these indicators. What indicators are you a fan of. :-)
David, im disappointed to hear your not a fan of Fibonacci, I use Fibonacci on every single trade, however I don't use it blindly, I use Fibonacci incorporated with support and resistance and it is very powerful, I have huge success. I don't use it how you did on your example but I could see my set up on your chart and it would of worked perfectly. the huge benefit of my strategy is I can keep my SL very tight, literally a few pips, which enables me to get in at a decent lot size and also compound it. non of which I could do without the golden levels of Fibonacci.
Hello and thank you very much for the video. In 5:40, you stretch a Fibonacci line from about 1120 to the high. I would love to know why you are not stretching the Fibonacci from the last low point that was priced around 1190 ? it will help me a lot, thanks
Hi thanks for the video. Can you please make a video about the different time trading charts ( 5,10mins, 1 day and so on charts). What is the connection between them and when to use which time chart? Will be helpful for a new trader like myself! Many thanks in advance
I really enjoyed this video...even though you don't like them would you consider a video where you could show some examples of how you might use Fibonnaci in conjunction with other indicators to make more informed trading choices?
This Fib thing seems completely ridiculous to me! But, what do I know?! Lol... might as well divide those levels by 10 and for sure one of those levels will stop the down trend!!!!!!!!!! Nice video, BTW, like always.
Yeah, I agree. The "Fibonacci retracement" sounds so fancy people think it must means something oh so profound, revealing some truth about the mystique of the market. It's bullshit.
i don't think Fibonacci Retracements are used anything like this, you have to use the swing highs & lows, resistances and then still confirm with other technicals as well.
Thank you very much for such a great sharing session .... you are a great master ..... expecting much more from you ... thank you once again... god bless you
This was explained very well but was not charted correctly. It should not be from a low to a high over that length period. It should been charted low to next leg higher..
I would use it for lower time frames and liquid instruments like forex, but for the big picture support, resistance, moving average and trends are more than enough
Fibs are real enough in nature but in trading they only have relevance because so many people blindly believe in them. Too many variables for it make any real sense: Which 'low' and which 'high' are to be used? Which time-frame? Use a wick or body? Use plain candle or modified? Best taken with a pinch of salt and understanding that they are merely a self-fulfilling property, artificially derived.
Thanks for the comment Steve - I would tend to agree with you. i am never a fan of the more "mystical" side of charting - but again, if it makes some people money good luck to them.
Isn't all of technical analysis like this? I was under the impression that price action only allows prediction because people themselves expect it to be significant, but things like support and resistance don't really exist outside man's mind.
Hello Sir. Thanks a lot for this information on Fibonacci. Question. What is the ideal timeframe when trading fibonacci in FOREX? Would it be in minutes? hours? days? for me to get an accurate result. Thanks in advance. Keep it up.
Hi there, depends on your trading strategy, style, goals and preferences. Typically, it is believed that bigger time frames on the chart provide more reliable trading signals.
What I dont get is...it either works or it doesnt. How could you not be a fan of it if other people show it works? And conversely how could people be a fan if it doesn't work? Makes no sense
Hi there. Thanks for reaching out. Your comment will be taken into consideration, as usual. You can take a look at those videos about the RSI: How to Use the RSI - th-cam.com/video/jCNmjC8Uxqk/w-d-xo.html Identifying RSI Divergences - th-cam.com/video/TeKNi5ySp_g/w-d-xo.html
Man! If only people truly understood how to use the fib. It would change your whole perspective. The fib gives you high probability entries and take profit levels when utilized properly. Drawing it from the extreme low to the most recent high isn’t the proper way to use the fib.
How ironical! You may not be a fan of Fibonacci Retracements, but you explained it better than most people.
Being well informed on a particular topic allows you to take a better stance for or against it!
Truly
Fibo has already become a self-fulfilling strategy
Well said.... I am fully agreed
Great job
I'm having a hard time with this indicator. I appreciate the math and theory that went into it....but if you throw enough lines on your chart, you can always make an argument for support and resistance in any particular area.
Can someone elaborate on this point? I feel the same way.
@@jonstnr I understand exactly. it may be subjective, just remember that once the candle hit the target area, you may want to add more indicators that will agree with your analysis as well.
Exactly
Pretty much backs up why he doesn't think they work
Fibonacci theory has just become more clearer to me in under 10 minutes due to your great video than it has in 10 months from other sources. I discovered your platform and videos about a week ago and have watched lesson after lesson. You have a great way of teaching. Thank you.
"Hopefully you're still awake after that..." haha funny guy.
Fibs aren't meant to be used alone, but can be used as a confirmation of other technical analysis, or to predict profit targets (again as a confirmation of predicted price action). As with anything, they don't work all the time, but as a tool, they can be quite effective. After all, the Gartley pattern, Bat pattern, Cypher pattern are all fib based. And they can be very profitable patterns (if backtested properly).
My best analytic tool is my intuition.
Dennis H
No indicators should be used by there selves, you should use multiple
@@aamirbasir5464 exactly
From knowing nothing beyond it being TA, this short explanation was direct and to the point, and shown excellently. Very simple to understand the way it is laid out etc.
What id love to see now is how the fib lines are actually used by traders who really focus on it. I kno you said don’t trade based off fib but you explain everything very succinctly. Awesome
Most of anything, David's humility is very evident in the manner he explains. Baises seem to be out. Great job David for us to easily understand Fibonacci Retracements.
I love the way you explained this! The history along with how the percentages are calculated are really helpful!
I love davids style of teaching. Very informed and honest about his opinion, yet regardless he still provides a wonderfully clear explanation of the subject. Well done, but one thing that would be nice, but could possibly be out of the scope of what these videos ultimately aim to achieve, would be to mention not only that you personally are not a fan of fibonacci but to check out ___ form of analysis that you are a fan of.
Once again, great video!
Never get bored of watching the videos you do david , you explain everything so clearly and in detail , I dont know of anyone that can do it better than you
"but, what do i know." 😅
Look at thia guy. Very humble in knowledge
Lot of folk jumping in and saying he's not applying it properly- but none has offered an axplanation as to how exactly it should be used. Easy to neg everything- to put up or shut up would be fair I think.
Your comment is just as pointless as the neg comments then.
Anyone who says Fibonacci retracements don't work doesn't know how to use them. It's like the people who say short term investing doesn't work. My reaction when he said that was probably the same as his when people find out he's a trader and tell him how the financial markets are a scam and no one can really day trade successfully: "Whatever bro. It's making ME money."
He said it's not for him but he explained it well. Mostly because of the basis of retracements, how it's most likely just some absurd self-fulfilling prophecy.
"hopefully your still awake"...( i literally yawned so hard) HAHAHAHA
Love this guy videos he is the best
True, love him too. thanks for sharing great analysis. Cheers
100% definitely the best, just excellent instruction without the usual shilling that goes with.
true!
The best honest trader expert on youtube.. thank you as always
Finally I understand how Fibonacci retracements work.
Yup. This video is excellently detailed,
You’re a good teacher.
It’s not by muscle or shouting it’s by intellect!
I agree with someone else here-for an indicator that you really don't like, you explained it better than most of the people I've watched before.
wow, the most detailed theoretical explanation of where fibb retracement came from
I appreciate the evenhanded treatment of it. A skeptic could pretty easily say that if you draw 4 lines on a graph, give each one a certain margin of error, and always have a plan B prediction, it would be hard not to get somewhere in the ballpark, but all of those contingencies of "well if it breaks this level just go lower" is about the same kind of money pit as saying you should just double your bet every time you lose at blackjack.
Although you don't like the Fib' tool, you give a great explanation of how to use it. Have a cracking Trading week ahead! God bless. M
Thank you... Well explained....Subscribed.
Thanks, Raghavendra. Stay tuned for more original content by Trading 212.
First time I ran across your videos, David...EXCELLENT video! Very well explained in layman's terms. Congratulations for not confusing the crap out of me.
"hopefully you're still awake after that explanation", I laughed.
Love it. You are the best David. I like at the begging when you nicely said you are not a fan of Fibonacci but your explanations were terrific.
I feel like the only reason this would work is if many other traders were using it too, basically just deciding it should stop at that hidden support because of this “magical” ratio.
I tried watching till the end but I lost the will to live.Trade 212 is a great platform massive learning curve for me really getting hooked and enjoying losing my money lol
Tradiingview added the Fib indicator in the last couple of weeks that auto-draws-but just traditional.
In my opinion, I think one major reason these work-on the entries especially,-is that 1000s+ of traders are entering right at or very close to the same levels all at once because they are watching the same thing. It's similar to a group of "whales" deciding when to get into a Crypto trade just to "pump" the trade. However, in their case they have a predetermined sell point which really hurts people buying in and not aware of it or when to exit.
.
It's like a self-fulfilling prophecy.
One of the best explicit explanations for F.R., cheers mate!!!
Short, sweet and to the point. Foundation has been built, next is to conquer, crypto. Thank you for the amazing tutorial!
Your use of fibonacci levels isnt wrong, but that's not how algo use fibs to trade. They're doing extensions from dominate pivots. Understanding that might change your opinion of the validity of fibonacci in trading. Good video
Most simple and easiest way to explain fib. Good job
Immediately you said it doesn't work I closed the video!😂😂 But I still dropped a like!👍👍
you are a legend and this channel is the best to learn trading
Never understood Fibonacci better than this, Thank you 🙌
Good job! This is by far the best explanation on youtube.
d best David, we see the sincerity you have in your heart to teach us more. God bless.
What indicators do you like or use bud your obviously a great trader so we would love your recommendations. This would be more valuable to us I think.cheers for your great vids
Man this guy just makes it so simple to understand 🤯
That explains the possible utility for the 50% or 61% retracement levels. What is the utility of other levels then? Why not just providing those two levels in the graph?
Hello David,
I have watched almost all your video series. you are explaining the concepts very clearly. that's really helping me to understand the market better. could you please make a video about the Market depth and how it will affect the price action.
Thanks alot
I appreciate how clear your explanation is. Thank you
Can you make a video on pull back trading strategy?
Your honesty killed the lesson right from the start. LOL.
So basically it's a way of seeing that the price does up, down, and up again? It's just a giant, useless, confirmation bias indicator. if it "breaks below" a percentage level of support, then bounces back up (because that's what prices do), then the fib retracement support worked? This indicator would only work if literally every player in the market went by its principle.
How come you see a jump or drop in price after a big news headline? If the price jumped after a big pice of news and it just to happened to be at a fib retracement level, then fib retracement correctly predicted that?
Doesn't anyone see that it is in our psychology to confirm and recognize patterns, even if they don't exist?
Fib is a technical analysis tool. News is a fundamental analysis tool. Different things so don't conflate the two.
Does this guy still do videos? just finding him and so far i love it
Thanks for the great explanation!
David would you mind to tell what is your favorite way instead fib? hope to find out .
Thank you
Thank you, a well-explained video. Could you please explain the difference between volume and tick volume and how to use the tick volume? I'm a bit confused to see a company trading over 1M shares a day while the tick volume reads only a few thousand ticks. Successful trading!
Hi, Jo. Your suggestion is appreciated. Thanks for posting it.
Hopefully you are still awake!! That made me laugh so much coz I nearly dozed off 🤣
I am a beginner trader and like Fibonacci because I think so many people believe in it that it affects the Fibonacci trading to become true. Am I making sense?
Oh yes, and thanks for your videos, they are gems and you make it so easy to understand.
yep it becomes a self-fulfilling prophecy. the same thing is true for support and resistance levels
Nice analysis. I will take the time to view your other videos. Thanks for this, really helpful.
Great video. helped a lot understanding Fibonacci Retracements. Thanks a lot man.
Hi David,
love the videos. Always very informative. I have watched a number of your videos and see that you are 'not a fan' of some of these indicators. What indicators are you a fan of. :-)
The ones he hasn't said that to xD
the best place to understand trading. Thank you sir.
David, im disappointed to hear your not a fan of Fibonacci, I use Fibonacci on every single trade, however I don't use it blindly, I use Fibonacci incorporated with support and resistance and it is very powerful, I have huge success. I don't use it how you did on your example but I could see my set up on your chart and it would of worked perfectly. the huge benefit of my strategy is I can keep my SL very tight, literally a few pips, which enables me to get in at a decent lot size and also compound it. non of which I could do without the golden levels of Fibonacci.
Would u say it's the best indicator
Wow this is mind blowing explanation, well done Dave
Great videos - and really good to hear an honest opinion that this isn't the best indicator/tool and I agree its not for me
Hello and thank you very much for the video.
In 5:40, you stretch a Fibonacci line from about 1120 to the high.
I would love to know why you are not stretching the Fibonacci from the last low point that was priced around 1190 ?
it will help me a lot, thanks
Hi thanks for the video. Can you please make a video about the different time trading charts ( 5,10mins, 1 day and so on charts). What is the connection between them and when to use which time chart? Will be helpful for a new trader like myself! Many thanks in advance
Very good video, well explained and easy to follow.
Your kind words are appreciated. Subscribe to the channel and stick around for more.
I really enjoyed this video...even though you don't like them would you consider a video where you could show some examples of how you might use Fibonnaci in conjunction with other indicators to make more informed trading choices?
You don't need any other indicators, use Fibonacci incorporated with support and resistance
When it comes to Fibonacci in the markets you have absolutely NO idea what you are talking about at all whatsoever but you are not alone.
This indicator is brilliant
Fib is my favorite tool. I use it in conjunction with Ichimoku cloud and awesome oscillator.
What program are you using in this video and are there any programs you’re currently using you’d recommend?
Best explenation i have found on the web
I enjoyed watching your facial expression 😆... nice video!
Awesome explanation David.
Wow... best explanation I’ve heard so far
This Fib thing seems completely ridiculous to me! But, what do I know?! Lol...
might as well divide those levels by 10 and for sure one of those levels will stop the down trend!!!!!!!!!!
Nice video, BTW, like always.
Yeah, I agree. The "Fibonacci retracement" sounds so fancy people think it must means something oh so profound, revealing some truth about the mystique of the market. It's bullshit.
@@lexparsimoniae2107 it's works well with indicators and candle psychology. Because it's "fancy" in terms of wording doesn't mean it's not effective.
i don't think Fibonacci Retracements are used anything like this, you have to use the swing highs & lows, resistances and then still confirm with other technicals as well.
glad to see The Economist on the table behind you is featuring the article on our Prime Minister Modi!! :-)
Thank you very much for such a great sharing session .... you are a great master ..... expecting much more from you ... thank you once again... god bless you
Thanks for this.. Please can you cover how to predict the speed of the retracement. That is, how to predict how fast a trend would be...
This was explained very well but was not charted correctly. It should not be from a low to a high over that length period. It should been charted low to next leg higher..
Thank you for this! It would be great to see similar such visual explantions that tie other indicators to stock movements.
Hi, Manasi. Your suggestion has been noted. New videos are published on a weekly basis, so subscribe to the channel and watch this space.
Awesome explanation...very clear
I would use it for lower time frames and liquid instruments like forex, but for the big picture support, resistance, moving average and trends are more than enough
Very good explanation. Easy to understand.
Good Explanation on your video sir! Great Job!
you are not a fan of fibonacci but you explain it better for me im kind of like your teaching
Thanks for the video, I understood it better with this explanation 😊
Thank you! Very clear explanation.
Very good explanation 👍👏👏
Love your channel & honesty 👍🏼
Simply thank you
Thank you for the video. I thought this was a great overview of the fib. Cheers
Fibs are real enough in nature but in trading they only have relevance because so many people blindly believe in them.
Too many variables for it make any real sense: Which 'low' and which 'high' are to be used? Which time-frame? Use a wick or body? Use plain candle or modified?
Best taken with a pinch of salt and understanding that they are merely a self-fulfilling property, artificially derived.
Thanks for the comment Steve - I would tend to agree with you. i am never a fan of the more "mystical" side of charting - but again, if it makes some people money good luck to them.
Isn't all of technical analysis like this? I was under the impression that price action only allows prediction because people themselves expect it to be significant, but things like support and resistance don't really exist outside man's mind.
Hello Sir. Thanks a lot for this information on Fibonacci. Question. What is the ideal timeframe when trading fibonacci in FOREX? Would it be in minutes? hours? days? for me to get an accurate result. Thanks in advance. Keep it up.
Hi there, depends on your trading strategy, style, goals and preferences. Typically, it is believed that bigger time frames on the chart provide more reliable trading signals.
I'll take note of this Sir. Thanks a lot. :)
What I dont get is...it either works or it doesnt. How could you not be a fan of it if other people show it works? And conversely how could people be a fan if it doesn't work? Makes no sense
hv seen ample of videos on fibonacci but none have shown it the way its shown in this video!!
put up a different perspective altogether!
love your clarity David...thank you
Can it be used for intraday trading?
very simple and nice video. Thanks Sir
Could you tell why you are not a big fan of fibonacci retracement?
It is great tutorial..
I would really appreciate if you can make video on mcda and rsi
Advanced thanks
Hi there. Thanks for reaching out. Your comment will be taken into consideration, as usual. You can take a look at those videos about the RSI:
How to Use the RSI - th-cam.com/video/jCNmjC8Uxqk/w-d-xo.html
Identifying RSI Divergences - th-cam.com/video/TeKNi5ySp_g/w-d-xo.html
Very clear, thank you!!
Man! If only people truly understood how to use the fib.
It would change your whole perspective.
The fib gives you high probability entries and take profit levels when utilized properly.
Drawing it from the extreme low to the most recent high isn’t the proper way to use the fib.